System and method of transactional taxation using secure stored data devices

A system for transactional taxation comprising:

• a) a secure stored data device having means for storing purchaser-specific data, the purchaser-specific data including:
• i) a purchase history of the purchaser;
• ii) an identity verification information;
• b) an interface device for communicating with the secure stored data device;
• c) an identification verification input;
• d) a network, including a means for ascertaining the pre-tax purchase price, a means for collecting accumulated tax collection information, and a means for communicating with the interface device;
• e) a tax server having a means for storing accumulated tax collection information uploaded form the network over a tax server-network communication means;
• and
• f) a means for determining a tax rate on a purchase using the purchaser-specific purchase history of the purchaser, including means for storing tax rate structure information.

A method of transactional taxation comprising the steps of:

• a) ascertaining the identity of a purchaser using information stored on a secure stored data device;
• b) ascertaining the eligibility of the purchaser to make the purchase using information stored on a secure stored data device;
• c) ascertaining the pre-tax purchase amount and sending the pre-tax purchase amount to a secure stored data device;
• d) using an executable program stored in a memory of the secure stored data device to:
• i) add the pre-tax purchase amount to a total purchase history amount of the purchaser to obtain a new total purchase history amount;
• ii) compare the new total purchase history amount to a tax chart stored in the memory of the secure stored data device to ascertain a tax rate;
• e) using the tax rate to determine a tax amount and a total purchase price;
• and
• f) communicating the total purchase amount to the purchaser.